On the default branch of Kallithea, the version of SQLAlchemy is already more recent and turned into a range rather than a fixed version:

"SQLAlchemy>=1.1,<1.2",

compared to the version in the latest release ('stable' branch of Kallithea):

"SQLAlchemy==0.7.10",

I checked and the relevant commits that changed this line do not indicate other required code changes to support this newer SQLAlchemy version. You should thus be able to change setup.py manually and upgrade SQLAlchemy. These relevant commits are: